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Competition Tribunal Tribunal de la Concurrence Reference: Commissioner of Competition v. Sears Canada Inc., 2005 Comp. Trib. 5 File no.: CT2002004 Registry document no.: 0162

IN THE MATTER OF the Competition Act, R.S.C. 1985, c. C-34; AND IN THE MATTER OF an inquiry pursuant to subparagraph 10(1)(b)(ii) of the Competition Act relating to certain marketing practices of Sears Canada Inc.;

AND IN THE MATTER OF an application by the Commissioner of Competition for an order pursuant to section 74.01 of the Competition Act.

B E T W E E N : The Commissioner of Competition (applicant)

and Sears Canada Inc. (respondent)

Date of pre-hearing conference call: February 3, 2005 Member: Dawson J. (presiding) Date of order: February 7, 2005 Order signed by: Madam Justice Eleanor R. Dawson

SCHEDULING ORDER REGARDING HEARING RELATING TO SUBSECTIONS 74.01(3) AND (5) OF THE COMPETITION ACT AND WITH RESPECT TO SUBMISSIONS ON COSTS

[1] FURTHER TO the Competition Tribunal’s (the “Tribunal”) Reasons for Order dated January 11, 2005;

[2] AND FURTHER TO the submissions of counsel for the parties regarding scheduling of a hearing to determine the proper interpretation of paragraph 74.1(1)(c)(ii) of the Competition Act (the “Act”) and to determine the amount of any administrative monetary penalty to be paid;

[3] AND FURTHER TO the submissions of counsel for the parties regarding dates for serving and filing additional authorities on the issue of the maximum amount of the AMP that can be imposed;

[4] AND FURTHER TO the submissions of counsel for the parties regarding the preparation of a bill of costs and supporting material;

[5] AND FURTHER TO the consent of counsel for the parties as to the schedule; THE TRIBUNAL ORDERS THAT: [6] The hearing on the issue of the proper interpretation of paragraph 74.1(1)(c)(ii) of the Act shall take place on Monday, March 7, 2005, at 9:30 a.m. in the hearing room of the Federal Court at 330 University Avenue, Toronto, Ontario, for a duration not to exceed one half day.

[7] The Commissioner of Competition (the “Commissioner”) shall serve and file any additional authorities relevant to the interpretation of paragraph 74.1(1)(c)(ii) by February 14, 2005.

[8] The Respondent (“Sears”) shall serve and file any additional relevant authorities by February 21, 2005.

[9] The hearing to determine the amount of any AMP to be paid shall take place on March 29, 2005 at 9:30 a.m. in the hearing room of the Tribunal at 90 Sparks Street, Room 610, Ottawa, Ontario.

[10] The parties shall consult and agree on filing deadlines for any material for the March 29, 2005 hearing and advise the Registry by 17:00 on Wednesday February 9, 2005. Failing agreement the Tribunal will set a schedule.

[11] As soon as possible, the Commissioner shall advise both Sears and the Tribunal as to when she will be able to provide a bill of costs and supporting material to Sears.

[12] Counsel for Sears shall then advise the Tribunal as to the number of days that will be required to review the material in order to reach an agreement on the issue of costs.

DATED at Ottawa, this 7 th day of February, 2005. SIGNED on behalf of the Tribunal by the presiding judicial member.

(s) Eleanor R. Dawson

COUNSEL: For the applicant: The Commissioner of Competition Leslie Milton For the respondent: Sears Canada Inc. William W. McNamara Martha A. Healey

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